Leading investment bank Goldman Sachs reiterated its ‘buy’ rating on Microsoft stock (NASDAQ: MSFT). This comes even after the tech giant has shed nearly 25% in value in the last six months. MSFT has also lost close to 19% of its value year-to-date and remains under the bearish claws.
Goldman Sachs wrote that Microsoft stock will defy all odds and scale up in the charts next. Traders who take an entry position now could reap the benefits in the coming years. MSFT is under the radar now due to poor performance, but investors are waiting for it to bottom out in price.
Also Read: IBM Stock After 13.2% Crash: Rebound or Deeper Drop?
Microsoft Stock Price Target: Goldman Sachs Goes Bullish on MSFT
Global bank Goldman Sachs has provided a bullish price target of $600 for Microsoft stock. The investment bank wrote that the tech giant signals confidence in its AI products despite competitive pressure. The bank wrote that MSFT is a long-term stock that can reward traders with profits.
According to Goldman Sachs price prediction, Microsoft stock could surge by 55% next. Therefore, an investment of $1,000 could turn into $1,550 if the forecast turns out to be accurate. That’s stellar returns as only a handful of equities generate double-digit profits.
MSFT stock is trading at $384 on Tuesday’s opening bell and fell more than 3% on Monday. The AI spending fears are making traders look into other sectors, questioning the billions worth of investment. The software titans are yet to see returns on their investment, which is making traders turn sketchy. However, the banking giant remains confident in Microsoft’s stock prospects as it’s on top in the competitive AI landscape.
Apart from Microsoft stock, the bank is bullish on Google’s parent company, Alphabet. It also predicted that the internet giant can be an “AI winner” in the ambitious sector. This makes GOOG a must-watch equity as the chances of surging in value remain higher.